Answer:
increase in total variable cost.
Explanation:
Variable costs change depending on the company's total output. If the output decreases, the variable costs will decrease, if the output increases, the variable costs will increase, e.g. materials. On the other hand, fixed costs do not vary depending on the company's output, that is why they are fixed, e.g. rent, depreciation.
This doesn't seem to be a question, but rather, a statement.
Answer:
current market price of the bond is $667
Explanation:
the formula to calculate yield to maturity (YTM) is:
YTM = [C + (F - P)/n] / [(F + P)/2]
-
F = face value
- P = market price
- n = number of years x 2 =
- C = coupon
we just start replacing and solve for P:
- YTM = 8%
- C = 50
- F = 1,000
- n = 20
8% = [50 + (1,000 - P)/20] / [(1,000 + P)/2]
8% x (1,000 + P)/2 = 50 + (1,000 - P)/20
8% x (500 + 0.5P) = 50 + 50 - 0.05P
40 + 0.04P = 100 - 0.05P
0.04P + 0.05P = 100 - 40 = 60
0.09P = 60
P = 60 / 0.09 = 667
An income statement that expresses each line item as a percentage of a base amount is known as a common-size income statement
<h3>What is common-size statement?</h3>
An income statement that expresses each line item as a percentage of a base amount is known as a common-size income statement. Typically, this refers to overall earnings or total sales. Financial ratio analysis's objective is comparable to that of a common-size income statement. Items are shown as a percentage of a common base amount, such as total sales revenue, in a financial statement of common size. This kind of financial statement makes it simple to compare one company to another or different time periods within the same company.
The common-size statement refers to expressing each value as a percent of sales:
Sales 3,340 100.000%
income 274 8.234% (274 divided by 3340 times 100)
fixed assets 2,699 80.809%
current assets 836 25.030%
Inventory 417 0.12485 (417/3,340)
To learn more about common-size statement refer to:
brainly.com/question/14275288
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